When we come across successful business leaders’ examples, we often wonder what they do differently that distinguishes them from the rest of the world. The answer has always been transformational leadership, which focuses on empowering and inspiring the people that they work with. These leaders drive growth by encouraging their employees and teams to become better, thus transforming their capabilities to bolster their company’s efficiency and success.
However, each organisation is built differently, and so are the numerous people within it. Finding a common ground where one can function in a way that benefits the cohesive output while also creating a positive and happy work environment is challenging. This is where transformational leaders step in.
So, who are they, and how does this style of leadership function differently from others? Here are some interesting insights on transformational leaders in business and the importance of transformational leadership.
Who are Transformational Business Leaders?
In a nutshell, transformational business leaders are those leaders who are driven by the 4 ‘I’s:
- Intellectual stimulation
- Individual consideration
- Inspirational motivation
- Idealised influence
Such leaders utilise these four elements to become people-oriented and customer-focused leaders who specialise in encouraging innovation by empowering people and fostering creativity while instilling a sense of ownership. The importance of transformational leadership, therefore, lies in challenging the status quo and propelling people and the organisation towards a better future.
In comparison to other styles of leadership such as transactional leadership or visionary leadership, transformational leadership stands out in three major ways. Let us examine them in detail.
Delivering Significant Outcomes
They say, ‘Be the change you wish to see in the world.’ While the phrase is fairly simple, its implementation is quite complex.
No matter the arena, results always speak for themselves. Producing good results and not solely preaching about them is a key characteristic of transformational leaders in business. Particularly when these results are consistent, one simply cannot ignore the genuine effort and hard work that go into it. Risks are a part of the trajectory of a business. This thought is well-meshed and understood by transformational leaders. Despite the risks involved, they take the plunge and target the areas that can enhance productivity and results.
If you observe how Mukesh Ambani – the Chairman and Managing Director of Reliance Industries – has built a true multi-industrial conglomerate, you will know that he is truly a transformational leader. Under his aegis, Reliance Industries Limited has achieved incredible feats and continues to lead in the list of top 10 companies in India by market capitalization. It is Mukesh Ambani’s propensity to take risks in search of disruption (think Jio), adaptability, and elevating people to become multi-sectoral leaders that underline his organisation’s exemplary success story.
Nurturing an Atmosphere where Everyone Feels Noticed and Heard
Fostering a strong sense of ownership among the employees is key. Removing communication barriers and working on the challenges that they deal with in the day-to-day helps. In an atmosphere where each individual feels comfortable expressing their views, concerns, and suggestions, there is room for numerous ideas and growth. It ensures that no idea remains unheard. When employees feel valued and get opportunities to express their views and concerns from time to time, they also feel connected to the organisation.
Sanjiv Bajaj, the Chairman and Managing Director of Bajaj Finserv, and one of the foremost modern-day visionary leader in business, terms this as building an ‘owner’s enterprise’. He has played a huge role in giving significant power to his teams and employees so that they take creative risks and think like owners, thus delivering dynamic success in an ever-changing industry. Today, Bajaj Finserv is one of the country’s most trusted and successful financial services companies and much of the credit goes to Sanjiv Bajaj for being able to foster an environment where everyone feels noticed, heard, and empowered.
Promoting Transparency in the Workspace
Transparency is critical and ignoring it is disastrous for an organization’s efficient operation on many levels. Simply put, an employee discontented with the organisation will hardly find any motivation to design or build something that adds to an extraordinary customer experience. Transformational leaders understand this and know that they cannot build that experience alone. To rectify the challenges at the grassroots, they take charge and help enhance the systems for employees by making everything transparent, with open feedback loops and a culture of collaboration and frankness.
For example, the father of India’s IT boom – Narayan Murthy, the founder of Infosys – believes that ‘trust and confidence can only exist if there is a premium on transparency’. He has been able to foster a work climate where every leader and employee feels comfortable speaking openly about their mistakes, offering comments, and coming up with creative solutions. Ultimately, promoting transparency and dedicating time to employees is key to good leadership. It helps the employees build a sense of belonging and also makes them feel that their efforts are valued and appreciated.
Conclusion
Organisations do not emerge overnight. Teamwork is much more than just a key component of the organisation. As a result, creating a work environment in which every voice is heard, valued, and appreciated is critical. Couple that with honing the skills and talent of employees and providing them with the platform to think creatively and succeed is what transformational leaders excel at. They prioritise their roles as guides and mentors versus being ‘seniors’, with prowess in nurturing human potential to maximise growth, innovation, and disruption.
